Posted To: MBS Commentary
When a single, clearly-delineated event was responsible for 30bps of movement in 10yr yields in the matter of a few days, it’s hard to get too worked up about 10bps of movement over the same time frame. It’s even harder when that 10bps has occurred well-inside that 30 bps AND when any individual day has been limited to about 6bps. The above is in reference to the 3.10% to 2.80% drop (and subsequent rebound) in yields surrounding the Italian drama of a few weeks ago. Since then, bonds have been pretty indecisive and paralyzed . Without any significant data or events on the calendar, and with this being a Friday during a time of year when traders are more wont to eye the exits early, there is a high bar in place for any of today’s market movement to be classified as “meaningful…(read more)
Via:: MBS Day Ahead: High Bar For Bonds to do Something Meaningful
